Trade Union Presence and French Company Profitability: Is There a link?

Présence syndicale et rentabilité des entreprises françaises: existe-t-il un lien ?

Patrice Laroche

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Abstract: It is to be admitted that the French system of professional relationships is changing substantially today. The advent of collective bargaining in the company and the redefinition of the role and place of trade unions in social regulation raise numerous questions about their impact on company results. Hence, the object of this paper is to examine the link between the trade union presence and the financial results of French companies. From a sample of 2.978 firms, taken from the 1998 REPONSE inquiry (Professional Relationships and Company Negotiations), a statistical study was conducted. The results show that trade union presence does not affect the profitability of companies, thus disproving the conclusions of North American studies. This situation can be accounted for by the characteristics of collective bargaining in France and particularly the weakening of French Trade Union bargaining means over the last twenty years.

Date: 2005
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Published in Gestion 2000, 2005, 22 (3), pp.147-164

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02976866

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